Bitcoin Price Still Waiting for External Factors to Define Its Current Accumulation Zone

Well bitcoin’s recent sideways movement finally jolted us out of our boredom — just not in the way most watchers really wanted. Whether it was exchange hacks or regulatory action, it showed the impact external news can have on BTC’s current value. Read this week’s technical bitcoin price analysis summary to get a better idea of where things could head next.

Bitcoin Price Technical Analysis

Long Term Analysis

After leaving behind a triangle formation, prices were still going sideways according to Fibonacci´s supports. Those stabilized values of the past few weeks would be waiting for an external factor before bullish consensus gears an upward trend to higher quotes.

Traditional supports define a bouncing zone between $6,000 and $4,500, but a downswing like last weekend’s could be dangerous unless some news or fundamental factor shows up and boosts the delayed uptrend over $9,000 and beyond.

Mid Term Analysis

If we focus on Mass Psychology Analysis, an accumulation phase could be in progress while the current lateral market develops around the $7,000 axe.

According to bitcoin’s last historic highs near $20,000, Fibonacci Fan Lines keep warming the idea that the same movement would prompt another wave up. Then, following Elliott´s Development Theory, objectives would be far beyond that mark, but reaching that stage depends on what’s going on in world political and economic planning.

Short Term Analysis

Japanese Candlestick Analysis’ “fairy stages” reflect a tumult at the current ~$7,000 level, where for Bullish Soldiers and Bearish Crows to prevail depends on which side receives reinforcements first.

The Tie situation could still continue for another week, if participants sustain their “wait and see” attitude. Mathematical indicators seem to be able to back an upward development, but volatility oscillators aren’t confirming such a movement just yet.

What do you think will happen to the bitcoin price? Share your predictions in the comments section below.

If you find Ramiro’s analyses interesting or helpful, you can find out more about how he comes to his conclusions by checking out his primer book, the Manual de Análisis Técnico Aplicado a los Mercados Bursátiles. The text covers the whole range of technical analysis concepts, from introductory to advanced and everything in between.

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This technical analysis is meant for informational purposes only. Bitsonline is not responsible for any gains or losses incurred while trading bitcoin.

About Ramiro Burgos

Ramiro is a technical analyst specializing in stocks, futures, options and Bitcoin. He provides weekly analysis on the bitcoin price for Bitsonline. Based in Buenos Aires, Argentina, Ramiro has worked in the financial industry since 1987, with his technical analyses appearing in local and global news publications. Follow Ramiro on Twitter @milmaspop.